Citi Extends Third-Party Clearing Services in Asia
Citi’s Securities and Fund Services, a division of Global Transaction Services, announced it has gone live with third-party clearing services in Japan and Singapore for a leading global cash and derivatives broker dealer.
Under the agreement, Citi will provide an array of equities third-party clearing services for this broker dealer client, including trade monitoring, settlement creation, reconciliation and SWIFT reporting. The client will have access to CitiDirect® for Securities, Citi’s web-based client delivery platform which provides reporting, transaction, market information and corporate action information on areal-time basis.
The broker dealer client’s implementation of Citi’s third-party clearing solution in Singapore follows the SGX’s introduction of a third-party clearing framework in its securities market, allowing exchange participants direct access to the market by appointing a third-party provider to handle clearing and settlement functions.
A leading third-party clearing services provider worldwide, Citi clears 21 CCPs worldwide, including LCH Clearnet and EuroCCP. Of this 21, there are seven in Asia Pacific, including ASX Clear in Australia, HKSCC in Hong Kong, JDCC, JGBCC and JSCC in Japan, CDP in Singapore and Chi-X. Citi expects to enable the broker dealer community to reduce fixed costs, receive extensive settlement capabilities on both on-exchange and off-exchange flows and benefit from enhanced operational efficiencies. This addition to Citi’s activities builds on its existing leadership in providing the widest range of exchange clearing services to brokerages in Asia Pacific.
David Russell, Managing Director and Regional Head of Securities and Fund Services for Asia Pacific said: “Backed by our experience, Citi is proud to lead the development of third-party clearing as part of the ongoing development of securities market infrastructure in Japan, Singapore and the rest of Asia Pacific.
We remain committed to the working on innovative clearing initiatives that create greater market efficiencies and drive volumes for the broker community, especially across this region.”
Citi is also a global leader in providing third-party clearing services, offering this solution to clients in numerous markets including Australia, Austria, Belgium, Canada, France, Germany, Greece, Hong Kong, Israel, Italy, Japan, the Netherlands, Poland, Portugal, Spain, Switzerland and the United Kingdom.
Through its Securities and Fund Services business, Citi provides institutions worldwide with an unparalleled portfolio of offerings that enable them to grow, reduce cost and mitigate risk. With over $12 trillion of assets under custody and the industry’s largest proprietary network, clients can leverage Citi’s local market expertise and global reach to extract value across the entire investment value chain.
Through its proprietary network in 59 markets, Citi’s Securities and Fund Services business provides the clearing and settlement services required by broker dealers, global custodians and industry infrastructures, to support trading and investing activities around the world.